The highly anticipated NTPC Green Energy IPO, the green energy arm of NTPC Ltd., is set to open for subscription on November 19, 2024. The company aims to raise approximately ₹10,000 crore through this initial public offering, targeting investors interested in the renewable energy sector.
IPO Details
- Price Band: The price band for the NTPC Green Energy IPO has been fixed between ₹102 and ₹108 per share.
- IPO Duration: The IPO will close on November 22, 2024.
- Minimum Bid: Investors can bid for a minimum of 138 shares in one lot and in multiples thereof.
Grey Market Premium (GMP)
Ahead of the issue opening, the grey market premium (GMP) for NTPC Green Energy shares is around ₹1, indicating a premium of approximately 1% over the issue price. This suggests a cautiously optimistic sentiment among investors regarding the IPO.
Company Financial Overview
NTPC Green Energy, a subsidiary of NTPC Ltd., has shown impressive financial growth potential. The company aims to significantly increase its operational capacity from 3.3 GW as of September 2024 to 19 GW by FY27. Analysts project that NTPC Green Energy’s revenue, EBITDA, and profit will grow at a compound annual growth rate (CAGR) of 79%, 117%, and 123%, respectively, over FY24-27.
Important Dates
- IPO Opening Date: November 19, 2024
- IPO Closing Date: November 22, 2024
- Allotment Date: Expected on November 27, 2024
- Listing Date: Expected on November 30, 2024
Should I Apply?
Investors are considering whether to subscribe to this IPO based on its growth potential and market conditions. The strong backing from NTPC’s financial strength and established relationships with suppliers and off-takers adds to its appeal.
Experts’ Opinion
SBI Securities: Subscribe
SBI Securities recommends subscribing to the NTPC Green Energy IPO at the cut-off price, citing strong growth potential. They noted that at the upper price band of ₹108, NTPC Green Energy is valued at an enterprise value-EBITDA multiple of 53.4 times on post-issue capital.
Reliance Securities: Long-Term Investment
Reliance Securities also recommends subscribing for long-term gains, highlighting NTPC Green Energy’s financial strength and established relationships with off-takers. They emphasize the company’s focus on expanding into new energy solutions such as green hydrogen and storage.
Company Overview
NTPC Green Energy is recognized as India’s largest renewable energy public sector enterprise (excluding hydro energy). As of September 2024, it has an operational capacity of 3,220 MW from solar projects and 100 MW from wind projects across six states. The company aims to achieve a total renewable energy capacity of 60 GW by FY32.
Conclusion
With strong backing from analysts and a strategic focus on renewable energy growth, the NTPC Green Energy IPO presents an attractive investment opportunity for those looking to participate in India’s transition towards sustainable energy solutions. Investors should consider their financial goals and risk tolerance before subscribing to this significant offering.
Disclaimer: This article is intended for informational purposes only and should not be construed as investment advice. Readers are encouraged to conduct their own research or consult with certified financial advisors before making any investment decisions related to the NTPC Green Energy IPO or any other financial instruments.
